Most government units in Michigan unprepared for next recession
Wednesday, October 30, 2019
ANN ARBOR — More than half of Michigan's local government leaders are concerned about the potential impact of the next recession on their jurisdictions' ability to deliver public services and maintain government operations.
Although local leaders have widespread concern about the potential impacts, few expect that the next recession will hit soon. About 3% predict that it will begin in the next 12 months, 26% say within one to two years, and 31% estimate it is more than two years away.
Thomas Ivacko, interim director of the Center for Local, State, and Urban Policy at U-M's Ford School of Public Policy says "While no one knows when the next recession will hit or how bad it will be, the economic growth clock is ticking,"
Michigan has experienced 10 years of steady economic recovery since the end of the great recession in 2009. Data from the Michigan Public Policy Survey shows just over a quarter of local governments (26%) report taking specific actions to prepare for recession. Common actions taken include paying down debt, increasing savings, reducing spending and taking advantage of grants.
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